In developing countries and rural areas, less than 10% of the population may have access to banking services from traditional brick-and-mortar banks. In such areas, a bank may be physically located too far away for a majority of the population to travel to. And even if a bank is nearby, it may be the only bank location in the vicinity of a vast region covering a large number of the population. The brick-and-mortar bank may not have the resources and capacity to adequately support such a large number of customers, resulting in long wait times and inconvenience for the bank's customers. In most developing countries, building additional bank branches and/or installing automated teller machines (ATMs) at various locations are often not a viable solution due to the high costs of the complex infrastructure involved. Even in developed countries where there are more bank branches and ATM locations available, customers may still have limited access to banking services such as services that are not available from ATMs during non-business hours. Furthermore, certain customers such as the elderly or customers with disabilities may still have difficulty getting to the bank branches or ATM locations.
In recent years, the use of mobile devices in developed and developing countries has grown rapidly. As such, one way of providing these communities with access to banking services is to enable users of mobile devices to perform mobile banking transactions, such as making mobile payments or money transfers, or checking account balances or performing other account related services, directly from their mobile devices. However, security concerns are often a stumbling block that hinders the wide adoption and growth of mobile banking. Most mobile devices lack the capability to securely send end-to-end encrypted communication. As a result, sensitive information, such as a Personal Identification Numbers (PINs) and Primary Account Numbers (PANs), might be sent in plaintext form, creating a vulnerability in which such sensitive information can be intercepted by malicious parties and be used for fraudulent purposes.
While some security measures can be provided by mobile network operators, for example, to provide encryption capabilities at a base station, the protection provided by such solutions is still limited because the communication is still sent in plaintext form at some point during the transmission. Other solutions require re-provisioning of users' mobile devices, for example, by over the air (OTA) provisioning, and such solutions can be costly in terms of both deployment and operating costs. Consequently, mobile operators have to either pass this cost onto their customers or absorb it themselves. Thus, the total cost of ownership (TCO) is also often a stumbling block that prevents the uptake and growth of mobile banking. Without a cost-effective and efficient way to securely send and receive communication with mobile devices, mobile banking operators are destined to incur losses or fail to roll out their mobile banking services entirely.
Embodiments of the present invention address these and other problems individually and collectively.